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Why You Need An Accountant Before You Start a Small Business In Ireland

As the owner of a small start-up business, it can be almost impossible to see the need to hire the help of professionals for various activities.

After all, sales have only begun to occur in trickles. So inventory won’t be much of a problem, the numbers wouldn’t be too complex to crunch, and you haven’t even broken even to be able to pay for the services of a professional.

Very understandable.

But not getting the help of a professional early in your business could get you into a whole lot of trouble – especially with the authorities. An accountant is one of the professionals whose expertise your business would require in its early stages if it will survive the financial hurdles plaguing most small businesses.

Here are reasons why you need an accountant for your small business in Ireland.

An Accountant Helps You Structure Better

As you set up and run your business, you will need the help of an accountant to set up the right structure for your business. This structure involves setting up as a sole proprietor or a limited liability company.

Choosing a business structure may sound simple. But in Ireland, it can pack a lot of complexities along the line. For example, a sole proprietor can pay taxes of up to 42% of their income. On the other hand, a limited company in the country pays only about 12.5% of its income in taxes.

An account will also help delineate the advantages and disadvantages of different business structures. And they do this elaboration using your risk appetite, business capital, and financial forecast – instead of the guesswork you’ll probably do without an expert.

An Accountant Ensures You Get It Right From The Start

At the start of your business setup and transactions, there might be receipts, documents, and files you deem unimportant. But the loss of those files could cost your business its existence if you fail to present them to the Revenue Commission or other Irish regulatory bodies upon request.

Nevertheless, when you hire an accountant from the beginning, you’ll know the documents you need in the future and store them appropriately.

An Accountant Helps You Register, File, And Pay Appropriate Taxes

When you set off on your own, you may not know the exact taxes to register for and which ones to leave for later. Also, certain taxes, like VAT, only applies to businesses with a transaction threshold of €75,000 with a €37,500 turnover. Only an accountant can help you monitor your business to begin its 28-working-day process on time.

An Accountant Steers Your business away from unnecessary penalties and fees.

Opening and managing a successful business in Ireland involves more than just crunching numbers and scaling profit. As a business owner, you must, in addition to registering and filing relevant tax returns, pay your taxes on time. Failure to meet tax return deadlines can come with monetary and operational penalties.

As a vivid example, delaying your tax payment to either the Irish Revenue or the Companies Registration Office can incur fines of up to €1200. But the presence of an accountant will help you avoid such penalties.

Defaulting on preliminary tax is another pitfall an accountant will help you avoid in your business.

However, in addition to helping you avoid unnecessary penalties, an accountant will also help you claim deductible tax expenses during the start-up of your business.

An Accountant Helps Keep Your Business In One Piece

An accountant also helps you run your business smoothly, even if you run other businesses or do a full-time job.

First, an accountant can recommend the best accounting automation app for your business. This recommendation will be based on the nature and features of your business. It will include digital tools to help you efficiently enter and safely store your accounting data and files.

Recommending accounting software also means that your accountant will have remote access to your accounts to effect necessary changes without needing to be physically present on your premises.